Better Transparency Will Help Advisers Shine.(Advice)

Byline: John Morgan

It won't be easy in the aftermath of a global recession, but with the right mixture of transparency and expertise, wealth managers will be able to regain their status as trusted advisers.

"Transparency is the new gold standard of wealth management," said C. Steven Crosby, U.S. leader of PricewaterhouseCoopers' private banking and wealth management practice. "How managers and service providers keep clients informed regarding performance of their assets and integrity, financial health and processing status will be brand-differentiating."

Investors still need and want advice, but they will be much more selective about the quality of advice they receive, according to a new report from PricewaterhouseCoopers titled, "A New Era: Redefining the Way to Deliver Trusted Advice." Investors have raised the bar and are demanding more from their wealth managers, including more experience and the ability to provide peace of mind.

Good investment advisors will have to balance the long-term needs of their clients with the long-term needs of their firm, rather than focusing on the "flavor-of-the-month" products, Crosby said.

"Clients are starting to ask the tough questions," he said. "They want to know where their assets are at any point in time."

"Regulators are clearly focused on greater transparency, investors are demanding additional disclosures and more frequent reporting, and accounting and auditing firms are mandating improved process control and documentation," said Kirk Botula, chief operations officer at Confluence. "Funds must consider how technology and automation can improve their reporting processes in order to provide the speed, control and flexibility needed to weather a new era of reporting transparency and control."